CRE OUTLOOK

Original Content

NAI Global stays on top of market trends by writing original thought leadership pieces aiming to explore the real estate industry, create intellectual dialogue and help you make informed business decisions.

Automation is a topic that has been in the forefront of everyone’s mind over the past year. People anxiously wait to see how the workforce will change as soon as robots and smart software become more prevalent in the occupational setting. Many people tend to think of automation as something that will disrupt industries that rely on manual labor while leaving skilled labor untouched – a notion that is false. Everyone from pharmacists, attorneys, and real estate agents will be impacted by automation in the coming years.

1. Less manpower will be needed to complete tasks

The core of the robotic revolution is a desire to find ways to increase productivity and efficiency while depending on fewer people, and that's precisely what is happening gradually in CRE. Office space will likely be impacted in the coming years as robots and AI-driven programs do more admin work, like answer calls, organize information, and manage schedules.

2. There may be less development in the future

More robots will be employed on construction jobs around the country as technology continues to improve, and this means improved quality of structures and better use of space. In a CRE context, this means that we can expect less development over time as new commercial buildings are made more efficiently and with longer life cycles.

3. Warehouses will be driven by robotic labor

The warehouse sector is widely believed to be heavily affected by automation in the future. Robotic systems have already been employed in various warehouses across North America to help speed up the organizing and shipping of packages at distribution centers.

4. The nature of customer service will change

Advancements in deep learning and artificial intelligence are expected to be utilized in retail stores across the country now that robots are able to learn from their interactions with humans. Retail companies are experimenting with ways to use this technology to employ digital customer service assistants who can help shoppers locate items, learn about products, and solve basic problems.

Similar technology has already been rolled out online in the form of chatbots.

5. Automated drones performing aerial surveys

Self-driving cars aren't the only thing that's going to be moving themselves in the next couple of years. Drones have already made their way into the CRE industry thanks to their compact sizes and ability to photograph and video record buildings from many angles. As robotic technology improves, we can expect to see more drones flying around real estate projects throughout the country. The only difference is that in the near future, the drones will be flying themselves.

The Fourth Industrial Revolution

Bringing up the topic of automation elicits an anxious response in a lot of people. Nobody really knows what the future is going to hold, and a lot of people have the idea that they’re going to wake up one day and be replaced by robots.

However, it’s far more likely that the “Fourth Industrial Revolution,” as they call it, will happen gradually – giving people more time to adapt to changes in the labor force. Whatever the case, there’s no denying that the next few years are going to be some of the most exciting times in the industry.

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